Jim Devine wrote: >Anyway, _why_ is saving negative? is it because the stock-market boom (now >gone) encouraged excessive consumption, presumably by the upper middles and >the uppers? (the wealth effect, expectations effect) Or is simply that >income slowed rapidly so that consumer consumption plans fell behind, >staying at a high level not justified by current income? The savings rate has been in a downtrend since like forever. No reason to stop at 0, eh? Look for a chart in the next LBO. Don't forget there's lots of between-household lending going on - the rich people are lending their savings to those below them. Doug
